Reducing costs is an important part of running a business and maintaining profitability. One method of cutting costs is Least Cost Routing (LCR) – an optional feature on merchant facilities designed to help you reduce transaction fees. This feature allows you to choose which network(s) tap-and-go payments are sent through for dual-network debit cards, giving you the freedom to choose the option that’s most cost-effective for your business.
How does Least Cost Routing work?
With Least Cost Routing, when a customer taps their dual-network debit card – a card that has the Mastercard® or Visa® logo on one side and the eftpos® logo on the other – to make a payment, the merchant can choose to send the transaction via the network that costs them the least. If the merchant does nothing, the transaction will go via the default network of the card, typically the Mastercard® or Visa® network.